Moody's rates Financiere Pax loan B1

Moody's Investors Service said it assigned a B1 corporate family rating and B1-PD probability of default rating to Pax Midco Spain (Areas).

Moody's also said it assigned a B1 ratings to the new senior secured credit facility at Financiere Pax SAS, including the €850 million senior secured term loan B1, the €200 million dollar-denominated term loan B2, €125 million revolving credit facility and €150 million acquisition and capital expenditure facility.

The outlook is stable.

The proceeds from the new term loan, together with new common equity, will be used to fund the acquisition of Areas by private equity group PAI Partners from Elior Group SA.

The acquisition is expected to close this summer, subject to customary anti-trust approval, Moody's said.

The weakly positioned ratings balance the company's high adjusted leverage of 5.8x at closing against a relatively solid business profile, underpinned by good revenue visibility and high barriers to entry, the agency said.

The ratings are supported by the company's leading market position in the concession catering industry, being the third largest operator worldwide with strong presence in key European countries, Moody's added.

The ratings also consider its growing presence in the United States, supportive long-term market trends driven by increasing travel flows, the agency said.

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